Positive Impact
At Lumentum, we develop our employees to succeed while creating a diverse and inclusive culture that values differences and inspires creativity. We operate to the highest social, ethical and safety standards within our facilities and propagate that expectation across our value chain. Finally, we aim to positively contribute to the communities in which we live and operate.
- Human Capital Management
- Diversity, Inclusion, and Belonging
- Occupational Health and Safety
- Product Safety
- Community Engagement and Support
Human Capital Management
Our future success depends upon the strength of our team. Consequently, our ability to recruit and retain the services of executive, engineering, sales and marketing, and support personnel is of critical importance. The supply of highly qualified individuals–in particular, engineers in specialized technical areas and salespeople specializing in the service provider, enterprise, and commercial laser markets–is limited, and competition for such individuals is intense. Therefore, we understand the importance of creating an attractive work environment for our employees and managing our brand in the job market.
To maintain an engaged workforce, we utilize a tool called Glint to conduct an employee engagement survey every six months. This helps us to understand the health of our organization and identify areas to improve. Another key to fostering an attractive work environment is providing our employees the opportunity to learn and grow as individuals and professionals. The training and education of our employees are essential to maintain Lumentum’s high standards for the design and manufacture of our products along with the safety of our employees. To meet our ongoing needs for innovation and quality control, we invest in our employees’ development in safety, technical expertise, professional business skills, leadership, and diversity, inclusion, and belonging. In addition, we offer support for job-related degree programs and certifications through our learning assistance and reimbursement program. This program covers all regular Lumentum employees across various learning types, from self-paced computer-based learning to the pursuit of a degree at an accredited university.
| Human Capital Management | FY20 | FY19 |
|---|---|---|
| Total number of employees | 5,859 | 5,681 |
| - Female | 2,686 | 2,498 |
| - Male | 2,916 | 2,937 |
| - Not disclosed | 257 | 246 |
| - Percentage of temporary employees | 9.4% | 11.8% |
| Total number of new employee hires | 1,829 | 2,729 |
| - Female | 925 | 1,235 |
| - Male | 893 | 1,494 |
| - Not disclosed | 11 | 0 |
| Total employee turnover | 1,479 | 1,205 |
| - Female | 675 | 525 |
| - Male | 793 | 679 |
| - Not disclosed | 11 | 1 |
| Percentage of employees receiving regular performance reviews | 100% | 100% |
| Percentage of employees receiving regular career development reviews | 100% | 100% |
| Total hours of training | 43,565 | 30,683 |
| - Average hours per employee | 7.4 | 5.4 |
| Note: 2018 is not reported due to a change in reporting systems. Training is conducted across business functions and tracked locally. We believe the reported value is well below actual hours and we are working on increasing our data tracking mechanisms for FY21 reporting. | ||
Diversity, Inclusion, and Belonging
At Lumentum, our people contribute directly to our success. Although we come from all corners of the globe—representing people of diverse cultures and perspectives—we share the same goals and vision for our company. We are unified in our commitment to live our Guiding Principles: Innovate, Engage, Deliver, Excel, and Win. Our differences make us stronger, more creative, and capable of delivering better results. As a global, multicultural company driven by innovation, we are building a diverse and inclusive culture where differences are valued but we realize there is still room for improvement.
Progress toward our multiyear diversity and inclusion strategy for sustainable cultural change is measured quarterly for support and accountability by our Compensation Committee. Our Diversity, Inclusion, & Belonging (DI&B) Council, formed in 2019, aligns our diversity goals and objectives with our wider company goals and objectives. The council is co-chaired by our Chief Executive Officer and our Vice President of Talent and Chief Diversity Officer, with representation by all business units and functions. Initiatives include:
- Unconscious bias training focusing on three areas of the candidate and employee experience: attraction, development, and retention.
- A university relations program and partnerships to engage with the National Society of Black Engineers (NSBE), the Society of Women Engineers (SWE), and the Society of Hispanic Professional Engineers (SHPE).
- A partnership with ten universities and four Historically Black College and Universities (HBCUs) to provide internship opportunities with a $10,000 scholarship awarded at the successful completion of the internship.
- Employee Resource Groups (ERGs) launched for early career hires, women, and Latinx and Hispanic employees, with plans to expand to other employee groups.
| Diversity, Inclusion, and Belonging | FY20 | FY19 |
|---|---|---|
| Number of employees in management roles | 225 | 225 |
| - Female | 58 | 57 |
| - Male | 167 | 168 |
| - Diverse employees | 134 | 133 |
| Number of employees in technical roles | 663 | 697 |
| - Female | 228 | 243 |
| - Male | 435 | 454 |
| - Diverse employees | 67 | 65 |
| Number of all other employees | 308 | 300 |
| - Female | 132 | 128 |
| - Male | 176 | 172 |
| - Diverse employees | 67 | 68 |
| Note: 2018 is not reported due to a change in reporting systems. Employee data reflects US operations only. Lumentum identifies diverse employees as those who are not of Asian or Caucasian descent. | ||
Occupational Health and Safety
Protecting the health and safety of our employees is vital to our core values. Caring for and attending to everyone who comes through our doors is also fundamental to Lumentum’s success and plays a major role in quality control. Providing a productive work environment means ensuring that all our facilities’, and our supply partners’, practices are safe and comply with all applicable workplace health and safety laws and regulations.
All employees are required to comply with all Lumentum environmental, health and safety policies. We have over 30 corporate health and safety policies that cover a range of issues from evaluation of EHS compliance to hazardous waste management to noise exposure and hearing protection. Employees whose responsibilities are connected to these policies are required to undergo mandatory safety training and comply with the relevant policies. The occupational health and safety management system at our largest facility, based in Thailand, has been ISO 45001-certified and we will continue to advance our program through sharing best practices learned and implemented from our global operations.
ISO45001 Certificate (PDF, 822 KB)
| Occupational Health and Safety | FY20 | FY19 | FY18 |
|---|---|---|---|
| Number of recordable work-related injuries | 10 | 15 | 21 |
| - Recordable work-related injury rate | 0.29 | 0.26 | 0.48 |
| Number of high-consequence work-related injuries | 0 | 1 | 1 |
| - High-consequence work-related injury rate | 0.00 | 0.02 | 0.02 |
| Number of fatalities as a result of work-related injuries | 0 | 0 | 0 |
| - Fatality rate | 0.00 | 0.00 | 0.00 |
| Number of hours worked | 6,984,580 | 11,362,535 | 8,727,957 |
| Note: Rates have been calculated based on 200,000 hours worked. San Donato, Italy was excluded from FY20 aggregation as we vacated the facility during the reporting year. We do not believe this materially impacts the disclosed performance. | |||
Product Safety
Lumentum is committed to ensuring the health and safety of our customers, including the ends users of our products, with the safety of our products being a critical design requirement for all Lumentum products. Product safety goals and objectives are specified at the business unit and functional engineering level. The strategies employed to meet these goals and objectives are reviewed quarterly with assessments reported to management.
Lumentum has formal product development procedures covering product safety requirements which address design, testing, and product safety certification. We assess the safety risks arising from the use of our products or components within our product development processes. This safety evaluation considers all aspects of product safety, including any possible negative EMC (electromagnetic compatibility) effects on the product.
Lumentum typically employs an independent third-party certification body to evaluate and certify the safety of our products. This certification is maintained throughout the product lifecycle including product modifications and manufacturing surveillance to ensure continued safety compliance. Additionally, Lumentum self-declares CE compliance to applicable EU directive(s) based upon the formal evaluation performed by the third-party certification body.
Community Engagement and Support
The act of giving back, whether that be through volunteering or in-kind and monetary donations, is deeply rooted in our culture and is tied to one of our Guiding Principles, Engage. We consistently strive for a better tomorrow by uplifting our communities while continuing to make Lumentum a great place to work.
In addition to our ongoing efforts through flexible volunteer hours, in 2020 Lumentum introduced Lumentum Gives. This all-encompassing program was designed to introduce additional paths for community engagement. Created by employees for the community, the program includes three pillars–flexible volunteer hours, disaster relief, and company donation-matching. Our mission is to fan the spark of generosity that is within all employees to make positive change through meaningful contributions.
Currently, the Lumentum Gives program benefits have been introduced in Canada, Switzerland, and the United States. As the program develops and expands, it will be available to all our sites across the globe. Meanwhile, our other locations continue to be active in their communities through our matching donation benefits and site-specific engagement with local community organizations.
